estate has not a form of shelter but an interest rate sensitive investment just like all interest rate sensitive investments right now, they see a decline ahead. >> robert frank, thank you meanwhile, twitter shares still halted at $47.93 on news pending elon musk might be getting ready to buy power lunch" picks up our coverage right now >> indeed we do, jon thank you very much. welcome, everybody, to "power lunch. along with melissa lee, i'm tyler mathisen here is what's ahead on this very busy news day twitter shares halted, as jon mentioned. midday surge elon musk reportedly changing course, and that puts it mildly, proposing to go through with the deal to acquire the company, twitter, at the initial price he offered months and months ago. we will have details on this gopgo i developing story. plus, stocks rally, the

dollar weakens, yields pulling back a bit but is the market an stiticipai something that might not happen? melissa, welcome home. >> great to be back, especially when we're seeing stocks rally across the board s&p 500 on track for the best two-day gain in two years. up 5% in two days. look at the gains across the board. we have the dow higher by 2.4% s&p, 12 points off session highs, up 2.7% nasdaq gaining the most of the majors, up by almost 3% right now. a big reason behind this rally is the decline we've seen across the yield curve, particularly in the ten-year yield 3.623% right now far cry from where we were one week ago two-year note at 4.11. corporate news, we're watching shares of twitter. they are spiking they're halted on the reports that tesla ceo elon musk plans to go ahead with his deal to acquire the company for $54.20 a share. it is trading well below that.

$47.93 that's a whole other ball of wax, tyler >> absolutely. as melissa was pointing out to me, what'd you say a few moments about the interest rates when this deal started? >> when elon musk proposed to buy twitter, the ten-year yield was 2.83%. the world has changed, but according to these reports, the price has not changed. >> yeah. >> if he actually goes through with this. >> at that number. >> yeah. >> so twitter is in the news, in the bull's eye today, and this could spell a dramatic finish to a dramatic takeover story. one of the biggest of all time twitter locked in a legal battle with musk over the acquisition that was announced back in april. david faber has been reporting on this surprise move and is with us now. what's going on, david i mean, this seems like he has just folded given what he must perceive to be a very bleak set of circumstances in the delaware court. >> all true.

it appears he has folded done so not even with a settlement, tyler, which, you know, we all could have imagined would have occurred prior to the beginning of the trial on the 17th his attorneys calling and saying, "all right, can we talk? maybe we'll offer 50." no, that's not this. this is just saying, all right, i'll pay the price that i originally agreed to back on april whatever it was, april 25th, before i not-soon-after got buyer's remorse, it'd seen, at least that would be the argument of twitter's lawyers, and said, "i want out of here. he had a different case, but it was not the case they seemed to be making particularly well thus far, at least based on what we've been able to see occur in the court prior to, of course, the actual beginning of the trial, which as i said, was slated to begin the 17th of this month. let me tell you what we know, tyler, because it is somewhat confusing right now. people sort of wondering, well, what is exactly going on last night, mr. musk or his attorneys sent a letter to twitter's board of directors,

also to the court, saying, "we want to buy the company on the original terms $54.20." if we do so, litigation will end, and that'll be the end of it by the way, mr. musk won't need to be deposed later this week, and everything else would come to a halt. what would move forward is the deal on the terms that twitter agreed to months ago twitter, you can't blame them for this, it is my understanding, is sort of, well, kind of disbelieving almost. saying, "almost, that sounds great, but we just want to make sure if we let you out of this litigation, there isn't something here that's going to happen that we're going to feel very badly about, that you're going to be serious and actually close the deal." so, you know, they're going to most likely appear in front of mccormick, trying to iron this out, hammer it out, make sure it's done, but it does appear to be that's where we stand. the news pending that we have on

twitter shares, you know, at some point, this letter may get released it might even be in a 13d filing for mr. musk remember, he is or was -- is one of the largest shareholders, is the single largest shareholder and has been for some time that's how this began. maybe he'll amend his d and say, yup, that's it we agreed. the letter will be attached. we're waiting for that you know, potentially for this to see the light of day either in the court, then we would expect we'll get the actual, official news. then, as i've been saying, tyler, this deal could close very quickly the banks have 15 days to mark it if they want to, but they don't have to. they could waive that. all the approvalsare done. you know, this thing could close in a matter of days. you could see elon musk, once they get it all signed off on, you could see elon musk owning twitter. melissa, you mentioned the financing and how the markets have changed i did want to refer people back

to it because morgan stanley and the banks that are financing here certainly can take a quick look back. okay, that's what we have to sell $6.5 billion term loan $3 billion secured bridge and $3 billion unsecured bridge as you referenced, melissa, things can change a bit in the markets. what's the ultimate price going to be? where is the wiggle room there in terms of what l libor adds u to, is it enough probably not they may have to sell some of the debt at a discount, meaning taking a bit of a loss then the $7 billion equity commitment that musk got from all those people, larry ellison, mark andreesdrandr ee soandresoe ready to write the checks. >> why are twitter shares trading below $54.20 what is your guess >> they were because there was uncertainty about what this

meant, and then they were halted my expectation would be when we see the letter, we resume trading, they will trade very close to $54.20. given all the twists and turns here, you can't blame twitter and/or investors, tosome extent, for being a bit concerned. well, what am i missing here that's what happened, melissa. we had a headline. i think it was bloomberg that first reported it. kudos to them in terms of this letter then many of us sort of got a bit of the background here as to what was going on. by then, the shares were halted, news pending, and that's where they've stayed it is trading, as you point out, at a significant spread. that will tighten quickly, one would expect, when it are reope. we'll have seen the news, or at least some version of it being that letter that i've referenced a number of times. one other thing, you know, you follow tesla closely, melissa. you know, he sold a lot of it to fund this, but according to robert frank, who tracked this very closely, his math, he might

need to sell or at least raise another couple billion dollars for his $31 billion, or i should say, $25 billion check that he's going to have to write here for this you have $32 billion, roughly, in equity, and then $13 billion in debt, let's call it those are rough numbers. >> david faber, thank you very much, as always. fantastic reporting. we appreciate it david faber. for more on this story and why it is happening now, let's welcome in alex canterwitz, founder of big technology and cnbc contributor alex, welcome. good to have you with us i guess as i was listening to david and pondering the mercurial mr. musk, i'm wondering whether it is your instinct that this is the end of it. >> oh, that is really tough to call it the end. because i feel like we've been at the end so many different times. when musk signed the deal to close. then we thought, okay, he is protesting the deal.

are the u.s. courts strong enough to enforce it right now, looking at him saying, okay, i'm ready to settle -- not even settle, pay the full $54.20. >> pay it, yeah. >> am i going to say this is the end? no only because i leave ovpen the window to be continued, to continue to be surprised i think if you shut the win doerks dow you've been disappointed a number of times. i don't know what it'll be, but at this point, who knows i wouldn't say it is certain until the deal is signed and twitter is fully in musk's possession. >> continue to be surprised in that the price might not be $54.20 and the deal might not actually close in that the court case goes through? in what, alex? >> i think twitter is trying to go to musk and being like, let's be sure you actually want to do this so you don't play games, which is what david said is there a place where musk says, "okay, i'll make the deal," and then says "gotc ha"?

i'm not 100% sure. it seems certain, but if you are only 98% sure the deal will go through, the 2% speaks loudly right now. >> the financial market haves changed a lot since this deal was furirst announced in april. he is not the only interested party in this deal he has finance backing from, as david pointed out, larry andresl others how do it go through at the $54.20 what is the appetite like? >> that is going to be interesting. could you imagine musk calling up larry ellison and being like, "larry, listen, you pledged the $2 billion to me for this piece of junk company i've disparaged in public for the past, you know, how many many months caused many of the employees to leave.

not shown any trastrategic direction for where it is going. so about the $2 billion. you know, even for larry, it is a meaningful sum of money. it'll be tough conversations to v. we'll see this is going to be a test to musk's ability to be the entrepreneur of our generation if this goes through, will he come through for the larry ellisons who put their blind faith in him it'll be a real test of his legacy. >> let's say it does go through, alex fast forward not even too much out into the future, as david says, you know, the deal could close in a matter of days at this point what can elon musk do? when he first made that offer, he had sort of, you know, blue skies, right twitter can be anything. it is a great platform, et cetera as you mentioned, he's disparaged the company, the platform, for months and months on end at this point as a leader, what do you think he could do to save this platform and redeem his reputation >> the question is whether it really needed saving when he came in. of course, twitter is a mess i think any communications

platform that has a large chunk of humanity on it, sharing their thoughts without any filter, is going to be a mess i don't think there is saving that e elon's approach to get in on all the speech ideas, you know, i don't think that'll really make a huge difference. now, i do think that, you know, he is an entrepreneur. he is someone who comes up with these whacky ideas sometimes those ideas pan out. let's send, you know, a spaceship up and land it, you know, on the way down and reuse it again i mean, that's wild stuff. so if elon comes up with elon level ideas and finds people willing to execute for him, you know, for twitter, then i think there is a chance twitter is going to be in a better spot than it is today of course, it is really at a low spot now, so it is not going to take very much but -- >> if -- >> -- this is going to be a test of his ability as an inte entrepreneur, to show us the person many believe he is. >> maybe we can put up a chart of tesla stock right now and take a look at that. the question for you, alex, is, if this deal does get consummated at the full price,

what does it mean for tesla? because if mr. musk has to write a $25 billion check, one could argue, i suppose, that every dollar of capital he is putting into twitter is a dollar of capital he doesn't have to put into tesla >> and every minute of attention he puts into twitter is a minute of attention he's not putting into tesla, which i think is important. i think there's two things that could happen here, right first, you know, once this deal is signed and goes through, hypothetically -- we still don't know once it goes through, you might see a drawdown in tesla right away i think the bigger question is what happens to tesla long term? are investors going to stick with elon if he can't show he can turn twitter around? by that, i mean, you know, tesla, of course, is a very impressive success story as a business but on the stock market, part is a story. part of that story, or a chunk of that story is the fact that elon musk is a generational entrepreneur what he touches turns to gold. if he goes and buys twitter and can't do the same thing he's done to that company like he's

done to tesla and like he's done to spacex, there are going to be questions about elon's wisdom and brilliance and his ability to prolong that over time. >> really? so the guy can send a spaceship, you know, into outer space, reuse the rockets, et cetera, he can build an electric car company, co-found paypal, and then because of twitter, his reputation will be at risk >> i think -- look, i don't think you can -- okay, here's what i'll say. those companies, right now, the spaceship company, the car company, are valued above what they would be. there is a musk premium on it. no doubt so i don't think, like, his reputation as someone who can build these companies is going to be gone but the question is, what happens to the musk premium on the stock? yeah, for sure if he messes twitter up, the musk premium, predicated on him being in generational genius, it comes down a bit it doesn't go away completely, but there is risk there. no doubt. >> interesting alex, thanks appreciate your time >> thank you

our next guest owns both twitter and tesla personally let's bring in the founding partner and cio. wow, jack, now what? is the deal going to close, you think, and what happens to tesla shares they're higher, by the way, in today's session. >> yeah, i noticed that. yeah, i think that it is a risk to tesla shares near term, if musk needs to raise more capital. i also think it is a risk to the debt holders, you know, $13 billion of debt predicated on a $54 stock price may be slightly overlevered, based on where twitter ultimately trades. but i think wrapping this thing up is probably good news overall for shareholders of twitter certainly and tesla, we'll say probably, at least at this stage. >> are you hitting the bid on

twitter shares when they reopen, jack [ laughter ] >> possibly. >> that laugh tells me yes i mean, you've been waiting, right? how many have you been holding twitter shares i'm curious. were you holding them prior to elon musk's bid? >> sure. well, i don't -- i mean, it isn't like i hold it in a brokerage account. it is part of a managed account i have it is in tesla and twitter shares and some thematic portfolios we launch ied in october 2020 that's where it dates back to. >> all right. >> do you buy the idea that if -- by the prior guest, that if this doesn't work out and twitter doesn't get righted by mr. musk, that his -- he has high reputational risk attached to this, and the musk premium might come out of tesla and

other stocks that he's involved in >> yeah, i mean, i think alex raised an interesting point there. look, you know, he is a great manager. he is a mercurial guy. you know, this may have just been a whim that he -- the dog that caught the car. i don't know what will ultimately happen with twitter i'm not sure if they start charging a monthly fee that i'm going to be on board and continue to follow twitter i'm not sure but, yeah, i think that the reputation will certainly be dented but not killed. >> in terms of broader markets, jack, i want to get your take on the rally we've seen the past couple days, really predicated on the sharp reversal in yields as well as the dollar index. do you think that reversal is lasting? i feel like that is the foundation as to whether or not you believe this rally can continue >> absolutely. if you look at the move we've seen in equities, even year-to-date, down the 22%,

whatever it was, it was entirely explained by the 2% plus move in the ten-year treasury yield. i mean, almost to the percentage point. and so we're seeing now rates reverse, and we're seeing markets rally. here's the problem and, by the way, we believe that rates should be a lot lower. we have a comparable model that's been pushing rates, suggesting rates should be higher since 2019. it finally hit that now, and now it's come down with copper cascading. of course, gold, you know, lower, but at least relatively holding its own. that model now suggests the ten-year treasury yield should be 2.2%, not 3.6% or 3.7%, where it is today. if we were to drop that much, the s&p 500 would rally between 25% and 30%, depending on what earnings expectations are. here's the problem, the fed. the fed holds trillions of

ten-year treasury notes. if they believe that this market is get ting ahead of itself, tht the wealth effect associated with this rally is going to impede their ability to combat inflation, they're going to start dumping ten-year notes, and they're going to try to push the ten-year yield higher. i wouldn't declare victory on this, you know, market yet what i'm watching is the dollar. once the dollar rolls over, as investors believe that there's light at the end of the tightening tunnel, i would say, "all clear let's take equity market risk. in fact, we'd take equity market risk in non-dollar equity markets. >> interesting. >> great to speak with you thank you. jack ablin. >> thank you. will weaker u.s. economic data convince the fed to moderate the aggressive rate hiking path? it was implicit in what jack was talking about there. some say if the fed doesn't slow down, it risks a global recession. plus, our retail power

playbook a big challenge for the industry is excess inventory this fall. there is one stock that could benefit from that. as we head to break, shares of hasbro dropped after issuing a downbeat third quarter revenue outlook. it cut its full year outlook, as well "power lunch" will be right back chi. i don't do most of the things you see in medicare health insurance commercials. cut! all the ads look the same because the insurance companies all see us the same. humana is different. they get to know you and listen to what you need. they have all-in-one humana medicare advantage plans with medical and prescription drug coverage. most plans include vision, hearing and dental for as low as a $0 monthly plan premium in many areas. humana has a large network, and they offer ppo options for even more flexibility. members saved an average of $9600 a year on

prescription drugs. most plans include a yearly allowance for over-the-counter items. you can get tier 1 prescriptions with no co-pays or deductibles. call humana now to speak to a licensed sales agent. they'll treat you like a real person whether you actually go speed walking, or not. better care begins with listening. humana, a more human way to healthcare. our internet isn't ideal... my dad made the brilliant move to get us t-mobile home internet. oh...

but everybody's online during the day so we lose speeds. we've become... ...nocturnal. well... i'm up. c'mon kids. this. sucks. well if you just switch maybe you don't have to be vampires. whoa... okay, yikes. oh sorry, i wasn't thinking. we don't really use the v word. that's kind of insensitive. we prefer day-adjacent. i'll go man-pire.

welcome back to "power lunch. stocks are rallying in part on the hope the fed will moderate the aggressive rate hiking path. the reserve bank of australia did overnight. 25 basis points less than expected in rate hikes united nations conference on trade and development calling on central banks to cut it out, stop hiking rates. if monetary tightening in the advanced economies continues over the coming year, however, a global recession is more likely. even if it is looser than the 1980s, it was almost unavoidably harming potential growth rate in the developing economies, so says a u.n. arm. today, the san francisco fed president said further rate hikes are needed to beat inflation back, and the policies have to be held in place until, quote, truly done. for more on the disconnect and the dispute, the fed and the economy, tiffany wilding, north american economist at pimco.

thank you for joining us what is your base case for rates and the global economy andban bo do >> thanks for having me. it is very clear that underlying inflationary pressures do appear more entrenched. that's the case, i think not only in the u.s., but other large developed markets. however, you have central banks that are very much focused on that and have embarked on the most aggressive rate hiking path that we've seen in several decades. we think that probably continues over the next couple of quarters you know, nevertheless, probably ends in, you know, relatively mild but maybe a bit more prolonged recessions over the large, you know, developed markets, as a result of the fact that you still have elevated inflation that sort of limits the usual countercyclical policy response. >> so if i'm inferring correctly from what you're saying, and part of my job here is to put words in other people's mouths

you understand that, of course it is that those who are saying, hey, maybe the fed is closer than we think to stepping back off the brake, or at least not slamming it on as hard, you're not really in that camp, at least not yet? >> yeah. i mean, eventually, the trade-off that the fed faces will be quite different. you know, in a world, think fast forward to next year, we do think we're probably be in a recession in the united states unemployment is rising inflation is coming down what the fed faces is very different then than it is now, of high inflation and low unemployment yeah, so i think, eventually, sure, but as of right now, you know, i do think that you probably still get further aggressive rate hikes. again, at least over the next quarter or so. inflationary pressures do appear to be relatively elevated. >> the situation you described,

tiffany, in terms of where we will be, in, say, a year or so, it sounds like a stagflationary environment. is that what you're implying >> you know, ultimately, headline inflation will start to move down. i think the key issue is, you know, despite the easing in commodities, easing in the supply chain issues, underlying inflationary pressures do feel a bit more entrenched. although we get headline inflation coming down, what's happening right now is the fed is reacting, you know, to what they're seeing underlying that they are very aggressively reacting to that and so, you know, i think, again, ultimately, because monetary policy works through long and variable lags, ultimately, this probably does end in recession to get inflation back to target you know, but as i mentioned, once the unemployment rate starts going up, you know, for the fed, and we think it does rise, maybe to 5%, maybe a bit

above next year, again, that trade-off is going to be much different for the fed. >> real quick, how do you explain what's happened in rates over the past couple of days is it merely that we've gone from september to october? is it something else the ten-year has come off the boil, as it were, so has the two-year why do you think that is >> yeah, well, i mean, i think some of it is the result of, you know, you've had a lot of noise around some of the issues that are going on in the united kingdom. obviously, that's created a lot of market volatility and some risk aversion. you know, in addition to that, we've just seen a lot of financial conditions tightening to date, this year the fed has been successful at really tightening financial conditions you know, because, again, monetary policy works through lags, i think it is reasonable for the market to kind of take a pause, given what we've seen,

and to assess the impact on the economy that that's going to have. >> very interesting. tiffany, thank you so much appreciate that. great to have you with us. >> thank you coming up, opec plus set to meet tomorrow with the group expected to announce production cuts the report sending crude higher in the past two days, as consumers were getting relief at the pump we have the latest on what to expect. twitter shares still halted as elon musk is reviving his proposal at the original price days before the trial cwas set o begin. more ahead on this developing story. "power lunch" is back in two what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast,

reliable and secure for your business. thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back.

♪ welcome back to "power lunch. i'm bertha coombs, and here's your cnbc news update at this hour a michigan judge dropped charges against seven people in the flint water scandal. among the seven are two former state health officials blamed for deaths from legionnaires' disease. in new york, a judge says steve bannon is unlikely to

stand trial until late next year on charges that he defrauded donors who gave money to build a wall on the u.s. border with mexico prosecutors say bannon promised all donations would go to constructing the wall, but instead, he allegedly enriched himself and his friends. bannon denies the charges and pleaded not gouilty. one of country music's greatest icons has died. loretta lynn, whose songs spoke to the american working class, especially women, was 90 years old. lynn's best known song, of course, was the 1970s hit, "coal miner's daughter," an old to her father who died of black lung disease. melissa, my favorite might be, you're the reason our kids are ugly it's a classic country title, isn't it >> it really is. the raw truth, right that's the beauty of country

music. ahead, domino's higher by 4% u.p.s. upgrading to a buy, saying it is overblown the stock is dunown 40%. plus, the power playbook breaking down retail a key sector hit by inflation and supply chain issues this year whatam sulyo neshod u be watching heading into year end go. go smaller carbon footprint. go these footprints. go saving energy. emerson technology can help heat pumps replace fossil fuel heating for a cleaner, low carbon future. go blue skies go.

go boldly. emerson. - oh, the stock market is doing that fun thing again. news from the future: you're going to live through that about 10 more times! (laughs) no stress. i just discovered yieldstreet. they vet investments that don't ride the stock market rollercoaster. - [narrator] yieldstreet: private market investing.

less than 90 minutes left in the trading day. we want to catch you up on the markets. stocks, bonds, commodities and the fourth quarter playbook in the retail space we begin with the stock of the day. bob is at the twitter post at the nyse bob? >> haven't been here in a while, standing out front take a look. twitter, $47.93. that was halted at 12:04 useful to remind everybody, we've had two trading halts today. i'll show you what happened. 12:04, we were trading regularly. $43. 12:05, we were halted for volatility what happens in volatility is, you're halted if it is 5% above or below the average price for the last five minutes. you get halted, and it is automatic. it's not a company halt. resumed five minutes later, 12:10. 12:13, halted again. this time different. news pending what's that? that means the company called

the new york stock exchange and said, "stop trading. we have a news announcement. we'll announce it whenever we get to it. what's going on? we're waiting for the news a announcement to come out we're waiting for the company right now. let's keep moving here and talk about the markets overall right off the highs for the day. the important thing is, we've got big moves up in some of the big cyclical stocks here we're dealing with industrials, tech stocks, metal stocks really doing well today see caterpillar roaring, chevron up, walt disney on the upside. lagging are consumer staples names. defensive names here, most of them pharmaceutical names. s&p 500, you know we moved 160 points since yesterday at 10:00 a.m. that's when the ism numbers came out. the important thing is, generally, the ism numbers were favored for the federal reserve's position guys, back to you. >> thank you, bob. now to the bond market lower yields are helping equities again rick santelli is tracking the action

i've waited all day and wanted to ask you about the beenank of australia's give to the doves. >> yeah. you know, the bank of australia seems to have a lot of common sense with regard to their approach even though they still raise the smallest amounts, it's certainly set things on fire with respect to buying of equities, a global scenario hard to argue with their logic, melissa lee. i'm sure that the fed a couple years down the road will probably correlate with that, but they're not going to let us see it or share it with us at this point in time here's what jumps out. melissa lee is right, yields have come down dramatically, but they're starting to consolidate. as a matter of fact, we have twos through tens right now slightly lower in yield, but we have 20s and 30s higher in yield and lower in price we do see the -- see the right side of the chart today? it is dove tailing into the bottom of yesterday's range. now, if we look at what's going on with regard to boons, they

closed today at $1.87, two-week low yield. today, strong dollar ended on the 27th that was the high close at 114 look at it now, barely above 110.30 that means it is down almost 4% just since the 27th. remember, strong dollar was good for imports if you lived here, but it was bad for overseas profits. well, the multinationals are enjoying a roll ally i think it is one of the reasons stocks are going up, sources say. euro versus dollar two-week high today in pound versus dollar. three-week high today. the dollar may have peaked melissa lee, back to you. >> rick santelli, thank you. oil is closing for the day as opec plus gets ready to mean tomorrow with production cuts expected to be announced pippa stevens with a look at the numbers. >> hey, melissa. energy market squarely focused on opec plus' meeting in vienna

tomorrow with optimism around a production cut, pushing brent crude above 91 bucks u.s. opeil is up 9%, forcing deutsche bank to say it is already priced in. the much more important thing to watch, the firm said, is guidance around additional cuts further down the line. of course, there is the wild card of saudi arabia which could decide to cut production on top of the group's cut let's check on prices. wti up 3.3% and brent crude wit a 3.2% gain. we're seeing a pop in gasoline futures on the heels of general market optimism and what that means for gasoline demand. gas buddy saying gas prices in lower priced states could start to creep up. finally, energy stocks once again leading the s&p, gaining about 4% melissa. >> pippa, thank you. let's get to retail now. in a retail power playbook, the sector is down 33% this year

dragged lower by best buy, target and tjx let's bring in simien, senior retail analyst there are two worries. one, will the consumer spend how will retailers manage inventory, like walmart, target and nike consumers could get a lot of great bargains ahead of the holiday shopping season. >> yeah. good to be here. i agree with that. totally. the question is, there is excess inventory. we know that nike reminded us of that last week the question on the other hand is, do the brands need to promote? i think -- and you and i talked about this -- brand that maintain the brand equity, who said, i won't promote, i'll sit on the inventory because the balance sheet allows for it, they may walk out with better margins on the other side. there will be excess inventory, meaning tjx will benefit

on the other hand, there are companies saying, we're in the going to give up all the margin for market share you have the ceo of capri, for example, saying they like where they stand they're willing to hold back that's not going to be a discount story. >> so as we move into the holiday season, what kind of holiday season are you looking for? >> i think that people bought a lot of things during covid i think that depending on your replenishment, i think everyone said, you know what, i'm not going to shop in a 12-month time period with stimulus last year, pent-up demand i think we're dealing with the overhang i think companies need to inthe t intern internalize, not everyone needs what they bought last year holiday may be light, and it is okay do stores just throw promotions at the consumer? it pays to be strategic. this is a different period than the past normally, if your product doesn't move, cut it immediately. i don't think that's the right

move for everyone. >> you like planet fitness is that a holiday thing, or is that just, you know, people are eating extra cookies and turkey legs and you have to go to the gym? >> anticipating the resolutions starting early, you know no, i think what's interesting with fitness is on the back of all this, you're now seeing the numbers grow you're seeing market share gain. there's sort of the off-price of gyms, if you think about it. there's similarities to tjx. i think what we'll find is that as that keeps going, the stock has been knock douwn with the collective consumer business, but they'll continue to push forward. >> thank you good to see you. simian siegel. up next, twitter continues to be halted as david faber reports that elon musk plans to go through with his acquisition at $54.20 a share. what does it mean for the social media landscape? and what is musk's end game? "power lunch" will be right

back we'll talk about that and more in a moment.

welcome back to "power

lunch," everyone twitter soaring on reports that elon musk proposed to buy the company at the original price he offered back in april, potentially ending one of the most contentious takeovers in recent memory.looks at what this for twitter and the social media landscape. good to see you. put it all in context for us how valuable really is twitter i think of it as sort of fourth in a three-company race or fifth in a four-company race i'm not sure >> maybe it's just on its own race, tyler. one thing is for sure, the company that it appears that elon musk is going to be buying for $44 billion faces far more headwinds now than it did when he originally made the deal to buy it for that price tag 5 1/2 months ago take a look at the massive decline in value of other social stocks since the april 14th date when the deal was announced. since then, meta shares are down 34%. snap shares are down about 68%

now, if anything, twitter, arguably, has larger problems with growing engagement and driving revenue, in light of fears of a broader ad contract, and it also has smaller scale. after the departure of key talent, the fundamentals of twitter have been pressured. whether it is about employee t churn or the external pressures of the legal drama since the announcement of the deal what is next for twitter if elon musk does buy it he is going to be reckoning with the employee churn and morale issues after this drawn out drama. he is also going to be facing a contracting ad market. musk originally said that he wanted to cut twitter's reliance on advertising to less than 50%. he wanted to build a payments business that he said would generate generate $15 million in revenue next year. he talked about a subscription service he wanted to create. and, also, he laid out his goals

to grow the company's reach by about four times to $931 million users by 2028. those were his goals when he first was talking about the deal the question is now, whether after months of disparaging twitter, musk's plan for the platform has changed tyler? >> julia, thank you very much. jon fortt joins us to continue the conversation. welcome. your impressions here of musk, twitter, tesla, and this whole stew >> this is a mess. i mean, this is a dumpster fire. you say it is one of the most contentious acquisitions, but twitter said yes at the beginning. that's when it got contentious they said, "okay, go ahead and buy us." i think there's some important lessons from here. the first one being that geniuses make horrible investments, too elon musk bought near the top and didn't do his research, apparently, because he later said, "i had no idea it had all these issues."

i agreed to buy this with no due diligence. like a td ameritrade account, sounds good, let me buy it, right? so even though he has all this money, or maybe because he has all this money, he did that. overpromising works until it doesn't. elon musk tended, even in tesla, to say, "here's what i can deliver. then he doesn't deliver it, but in those cases, the upside, the innovation he's got going, is so much worse than being a little late, right? this time maybe the balance is more off, but i think the questions that i have now are how is owning twitter going to affect elon musk's other interests, including tesla, when it comes to china, the whole -- the eu, other geopolitical interests he's got and how is this blunder, because frankly it is one, he didn't intend to buy it for this much, right, going to affect his ability to raise capital occasionally he tends to need to do that -- >> to raise capital for tesla. >> whatever he's raising it for, spacex, tesla -- >> why do you think what's going

on with twitter will affect the investment in terms of capital raise in a tesla or spacex they're separate entities. >> yes, but the reason why people are willing to get into twitter with him, the ones who were, is because they want to associate with him in these other things that have been successful but we had orlando bravo at delivering alpha last week and before that saying, hey, kind of happy i dodged that bullet, didn't get into this deal. is he going to want to get into the next elon deal when it is clear how this one has panned out? it is not yet clear. maybe he maybe he makes it work. it seemed unrealistic at the time as someone who covered this space for a long time, even more of a long shot now. >> even geniuses make investment mistakes that's the phrase i'm going to remember. >> it could be the hubris of the successful entrepreneur, which we have seen time and time again. >> it works until midas' touch doesn't. >> jon, great to see you. twitter may be taking the

spotlight. don't forget about tesla stock moving lower we'll trade that next. - yieldstreet presents: alternative investing with kal penn and older kal penn. - oh, the stock market is doing that fun thing again. - hey news from the future, you're going to live through that about 10 more times. (laughs) - oh, it's no stress. i just discovered yieldstreet. they vet investments that don't ride the stock market rollercoaster. - ooh. i think some of my gray hairs just reversed. - yeah. you're welcome. - [narrator] become an investor today.

yieldstreet: private market investing. go. go scientist. go software. go cure. go production. go faster and safer. emerson automation software helps breakthrough medicines get to market at warp speed. go human go. go boldly. emerson.

welcome back

check of the markets session highs here s&p 500 3784 and semiconductors seeing a nice day, up 4% on the week, higher by 8%. all 30 dow stocks in the green right now. we got much more "power lunch" right after this ur third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

welcome back let's talk about the story of

the afternoon. twit ter shares jumping 12% tesla did lose some gains on the news before rebounding here by 2.7% at the moment let's bring in todd gordon, new age wealth advisers. tesla is your top holding. any concerns whatsoever that as an earlier guest pointed out, one minute spent on twitter is a minute less spent on tesla >> yeah, i saw that segment. and i'm kind of glad you pushed back, saying elon's reputation as a ceo is staked on twitter. i just don't see it. if anything he shows he delegates extremely well and i think if you look at twitter to start, i mean, do you know it ipo'd at $45 a share in 2013 if you held, you know, worked nine years, you're up 2, th3 buk a share. they're at 436 million monthly active users

compare that against snap which the snapchat, which has more. i think it is a good thing, i think he can delegate. i think it allowed him to get his message out clearly, which there has been a lot of confusion about what is actually happening in tesla, what he's doing. i've been on with you, melissa, arguing the bull side of tesla since like $170 presplit and in short continues to be wron bull >> to yodo you feel as good abo tesla as when you woke up this morning? >> i do. i'm not a tesla fan boy. i still think the cars are ugly. but i love what he's doing i'm sorry, i don't mean to offend anyone. but i think -- i think elon is playing a different game than the other traditional automakers he's playing a game where he's trying to win the autonomous driving and driver assist program, and when he connects star link, the spacex satellites

with the fleet, he's got ten years ahead and tons of more miles driven where the other automakers are playing the ev game so i continue to be bullish. i like what he's doing i think the stock showed a lot of relative support in a very low tape it bottomed in may and significantly off the high. >> thank you for watching "power lunch. >> "closing bell " starts right now. stocks are surging as the bounceback gains steam make or break money hour for your money welcome to "closing bell." i'm sara eisen near the highs, up 767 points, every dow stock is higher at the moment the s&p 500 up 2.85% adding to gains for the week, which now stand at up 5.5% for the s&p 500. nasdaq is leading the charge, up more than 3% tech making a big comeback spots in the market that have been hit the hardest are